"Price is key"
Dear Sir,
I’ve just read Jason Moores ‘viewpoint’ in which he asserts that price is the main determining factor when people choose their holiday destination. I have no doubt that price is key to a large extent but I think that there are a lot more factors which have a bigger influence when taken in total. I would suggest that a good means of determining these ‘other factors’ would be a short, well constructed questionnaire that could be filled out in the UK when the agent suggests resorts to their clients. Such a questionnaire would not only help the agent suggest destinations but would also accumulate hard data for resorts enabling them to act on it.
‘The 3€ cup of coffee’
An example for you. What makes a cup of coffee worth 3€? Is it the vista, the standard of service, do you get a biscuit with it, etc.? There are a lot of factors that must be taken into account when building your pricing structure. Obviously those businesses that charge 3€, and have been in business for some time, are not charging too much. There are a lot of factors that determine the demand for any service, product, etc. We then have to look at business costs. I’m sure that a cafe on the sea front pays substantially more rent than one not ‘on the front’, therefore obviously the front line cafe will have to charge more, but also provide a better ‘experience’ for the customer in order to justify the price.
It’s simplistic to suggest a ‘price cap’ would change everything, lets’s try to find the real factors. Majorca may be paradise but let’s face it paradise is rarely cheap. I can rant on about factors influencing demand and supply. Living here for 14 years all I see is the authorities making knee-jerk reactions instead of considering the long-term effects and acting on them.
Another matter ... Living in Magalluf and knowing many bar owners I am aware of the system of fines they face. The reasoning behind them, it seems to me, is for Calvia to issue huge fines for minor offences that many bars cannot afford to pay, whilst the bigger bars can afford them. Surely it would be better to issue smaller fines that all bars can afford. I would suggest that a 90% payment of smaller fines will amount to more than a collection rate of 15% of large fines, at the same time not hurting the small businesses too much. It really is a naive policy at present, everyone is loosing.
Rich
Magalluf